BOD Results

Press-release

Krasnodar

May 16, 2011

OJSC "Magnit" announces the results of the BOD meeting

Krasnodar, May 16, 2011: OJSC «Magnit» (the "Company"; RTS, MICEX, LSE: MGNT) is pleased to announce the results of the BOD meeting held on May 16, 2011.

Dear Ladies and Gentlemen!

We would like to inform you that today the BOD meeting was held (minutes are w/o № of May 16, 2011.

The BOD agenda items:

1. Approval of recommendations to the annual general shareholders' meeting of the company on distribution of profit, including the amount of dividend on shares of OJSC "Magnit" and procedure of its payment, and loss of the company based on the results of 2010 financial year.

2. Approval of recommendations to the general shareholders' meeting of the company on the amount of dividend on shares of OJSC "Magnit" and procedure of its payment based on the results of the 1st quarter of 2011 financial year.

3. Approval of the form and text of voting ballots №№ 2, 3, 8 for the annual general shareholders' meeting of OJSC "Magnit".

The following decisions were adopted:

1. Due to relocation of the Company´s registrar - OJSC "Obiedinennaya Registratsionnaya Kompaniya" (19, Leninskaya Sloboda street, Moscow) - to ratify the recommendations to the annual shareholders´ meeting on distribution of profit, including the amount of dividend on shares of OJSC "Magnit" and procedure of its payment, and loss of the company based on the results of 2010 financial year.

2. Due to relocation of the Company´s registrar - OJSC "Obiedinennaya Registratsionnaya Kompaniya" (19, Leninskaya Sloboda street, Moscow) - to ratify the recommendations to the annual shareholders´ meeting on the amount of dividend on shares of OJSC "Magnit" and procedure of its payment based on the results of the first quarter 2011.

To determine the following dividend amount according to OJSC "Magnit" BOD recommendations:

based on 2010 financial year results :

- total amount of funds for dividend payment - 584,566,229.61 rubles;

- the amount of funds for dividend payment on one share - 6.57 rubles.

based on the 1st quarter results of 2011 financial year:

- total amount of funds for dividend payment - 415,513,590.91 rubles;

- the amount of funds for dividend payment on one share - 4.67 rubles.

The Board of directors recommends to the general shareholders' meeting the following procedure of dividend payment:

·; To pay dividends following the results of 2010 financial year and of the 1st quarter in the amount of 11.24 rubles per one ordinary share.

·; To determine the dividend payment term - within 60 days from the date of the corresponding decision adopted by the general shareholders' meeting.

·; To effect the dividend payment with cash funds via the Registrar of the Company - OJSC "Obiedinennaya Registratsionnaya Kompaniya" - as the body providing services on dividend payment (19, Leninskaya Sloboda street, Moscow).

·; In case of return of transferred dividends to OJSC "Magnit" due to the incorrect bank details in the register of shareholders of OJSC "Magnit" or a shareholder's death, the repeated dividend payment shall be effected after the submission to the OJSC "United Registration Company" of the information on change of payment details and other details and inclusion of the corresponding changes to the register of OJSC "Magnit" shareholders.

·; In case of return of dividends sent by mail payment, the repeated dividend payment shall be effected by means of bank transfer to the account after submission by shareholder of bank details to the OJSC "United Registration Company" and their inclusion to the shareholders register of OJSC "Magnit".

The dividend transfer by any means is effected at the expense of OJSC "Magnit".

The list of persons entitled to receive dividends shall be made on the record date of holders entitled to participate in the annual general shareholders' meeting of OJSC "Magnit" - May 06, 2011.

For further information, please contact:

Company description:

Based in Krasnodar, in the Southern region of Russia, Open Joint Stock Company "Magnit" is the holding company for a group of entities that operate in the retail trade under the "Magnit" brand. The chain of "Magnit" stores is one of the leading food retail networks in Russia. As of March 31, 2011 the chain consisted of 4,128 convenience stores, 57 hypermarkets and 4 cosmetics stores (drogerie) in 1,239 locations in the Russian Federation.

Approximately two-thirds of the Company's stores are located in cities with a population of less than 500,000 inhabitants. Most of its stores are located in the Southern, North-Caucasian, Central and Volga regions. The Company also operates stores in the North-Western, Urals and Siberian regions.

As of March 31, 2011 the Company operated an in-house logistics system consisting of 11 distribution centers, employing automated stock replenishment systems and a fleet of 2,997 vehicles.

In accordance with the audited IFRS consolidated financial statements for the twelve months ended December 31, 2010, the Company recorded consolidated revenue of approximately US$7,777 million and consolidated EBITDA of around US$632 million.